Apple's AR Headset Will Be An Industry Game-Changer, Says Analyst

Apple, Inc. AAPL may not have disclosed much information on its augmented reality/mixed reality headsets but analysts are excited about the offering from the tech giant.

Will Boost Industry's Prospects: Apple will be a game-changer for headsets, prominent Apple analyst Ming-Chi Kuo said in a note shared on LinkedIn. Although Apple has reiterated that its focus is on AR, its AR/MR supporting video see-thru could offer an "excellent immersive experience," the analyst said.

This in turn will further boost the demand for immersive gaming/multimedia entertainment, he added.

The analyst expects AR/MR to be the most complicated product Apple has ever designed. Several existing suppliers are now in Apple's AR/MR supply chain, he noted.

Apple and its supply chain, according to the analyst, will see a favorable stock re-rating in the next two to three years.

"Apple is an industry leader with significant competitive advantages and doesn't need to join the Metaverse Standards Forum now," Kuo said.

Once Apple launches its AR/MR headset, its global rivals will attempt to imitate the company's offering, the analyst said. This will propel the headset hardware industry to the next stage of rapid growth, he added.

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Competitive Dynamics:  Kuo does not attach much significance to Meta Platforms, Inc.'s META  VR hardware investment cut. He attributes the development to, not only the economic recession but also the structural challenges faced by the company's core businesses of advertising and social platform.

The analyst highlighted Sony Group, Inc. SONY, Microsoft Corporation MSFT, Valve, Pico, HTC etc as the current VR headset brands worthy of attention.

Apple closed Thursday's session 2.16% higher at $138.27 and Meta rose 1.86% to $158.75, according to  Benzinga Pro data.